Young first-time buyers in England can now register with the Government to receive a 20% discount off the normal price of certain homes.
The offer will give those who sign up access to buy a new class of “starter homes”.
The Government hopes that house-builders will build 100,000 new houses specifically for first-time buyers over the next five-years.
The scheme is part of an effort to encourage young people to buy homes – a trend that has been declining for two decades.
Home ownership in the UK dropped to its lowest level in 29 years as young people are ‘locked out’ of an increasingly expensive housing market.
The government will make “starter homes” cheaper by exempting them from fees charged by councils of up to £45,000 per home.
Opens up the ability to own a new home for young people
Housing minister Brandon Lewis said:
“It opens up an ability to own a home to a whole new group of people”
He added that this “new starter homes programme is another 100,000 homes on top of everything else that we’re doing, allowing those first time buyers, people who want to own that home of their own, to be able to do that – a good design, well-built home, with a 20% discount.”
“When you link that with Help to Buy it opens up the ability to own a home to a whole new group of people.”
A “game changer”, says Cameron
David Cameron said that the new scheme is a “game-changer” for people buying new homes.
“We want to help people who work hard and want to get on in life but have been priced out of the housing market,” he said.
“A 20% discount off the price could be a real game-changer for many aspiring home-owners. My message is clear: we are on your side and we will help you fulfil your dream of buying your first home.”
The Communities Secretary Eric Pickles said:
“The number of first-time buyers is already at a seven-year high and these Starter Homes, available at a 20 per cent discount, will help even more people realise their dream of home ownership,”